Assisted Living
Refinance or Acquisition with Substanial Rehabilitation
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Rockport Mortgage Corporation is an FHA-approved
Mortgagee and actively provides financing
utilizing the FHA insurance programs nationwide.
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HUD 232
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Non-Profit
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For Profit
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Purpose
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Provides mortgage insurance
for the construction or rehabilitation
of assisted living facilities. (Facilities
currently financed with FHA insured mortgages
are eligible for streamlined refinancing
through the FHA 223(a) 7 Program. Additions
to facilities financed with FHA insured
mortgages also can be financed on an expeditious
basis employing the 241 Program).
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Eligible Borrowers
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Profit and Non-Profit motivated
and public owners are eligible.
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Maximum Term
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40 years plus a construction
period.
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40 years plus a construction
period.
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Maximum Loan
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New Construction: The
lesser of:
1) 95% of FHA's value
2) Amount of debt serviced
by 95% of the estimated NOI attributed to realty
Substantial Rehabilitation
the lesser of:
1) 95% of FHA's value
2) Amount of debt serviced by 95% of the estimated NOI
attributable to realty
3) If Owned - 95% of hard
and soft costs plus the lesser of existing
debt or 95% of existing value. To be acquired
- 95% of hard and soft costs plus 95% of the
lesser of purchase price or existing value.
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New Construction: The
lesser of:
1) 90% of FHA's value
2) Amount of debt serviced
by 90% of the estimated NOI attributed to realty
Substantial Rehabilitation
the lesser of:
1) 90% of FHA's value
2) Amount of debt serviced by 90% of the estimated NOI
attributable to realty
3) If Owned - 100% of hard
and soft costs plus the lesser of existing
debt or 90% of existing value. To be acquired
- 90% of hard and soft costs plus 90% of the
lesser of purchase price or existing value.
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Personal Liability
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None
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None
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Prepayment
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Negotiable
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Negotiable
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FHA Application
Fees
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0.3% of the loan amount.
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0.3% of the loan amount.
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Mortgage Insurance
Premium
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.5% per year
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5% per year
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FHA Inspection Fees
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0.5% of loan amount
(new construction)
0.5% of costs associated with construction (sub rehab)
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0.5% of loan amount
(new construction)
0.5% of costs associated with construction (sub rehab)
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Finance Fee
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Negotiable
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Negotiable
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Secondary
Financing
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Surplus cash notes are permitted.
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Surplus cash notes are permitted
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Funding
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Qualifies for government
insured mortgage-backed securities or direct
Placement or may be used to credit-enhance tax-exempt bonds.
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Qualifies for government
insured mortgage-backed securities or direct
Placement or may be used to credit-enhance
tax-exempt bonds.
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Interest Rate
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Subject
to market conditions.
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Subject
to market conditions.
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Territory
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Nationwide
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Nationwide
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Additional
Parameters
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The FHA Section 232
mortgage insurance program is one of
the most attractive credit enhancement
programs available for taxable and
tax-exempt financing of new construction
and rehabilitation of nursing homes,
intermediate care facilities, assisted
living facilities, and broad and care
(personal care) facilities.
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FHA is the only 40-year,
fixed rate, level amortization, and
non-recourse health care facility finance
program in existence.
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